Trading Statement

Ricardo PLC
12 July 2007


12th July 2007

                                  Ricardo plc

                               Trading Statement


Ricardo plc is the leading UK independent automotive consultancy, employing over
1,800 people. The company has centres in the UK, USA, Germany, Czech Republic
and Asia and the client list includes the world's major automotive OEMs.

Today the Board of Ricardo plc is providing a trading update, before the Company
enters the close period in respect of the year ended 30 June 2007. Ricardo will
announce its Preliminary Results on Monday 17th September 2007.

Since the announcement of our interim results in March, overall trading for the
second half has been in line with our expectations, with further order book
growth and improving performances across all divisions. The order book has
increased from £78m at the half year to over £85m at the end of June with a good
balance across all our engineering consultancy divisions. This compares
favourably to an order book of £72m at the end of the last financial year. Net
debt levels have halved since the half year position.

In addition to our US and European order growth, we have secured a number of
opportunities from Asia, particularly from Japan. We are also experiencing
significant growth in India and good contribution from China. The pipeline of
prospects from Asia continues to grow and we are pleased to also welcome
additional business from Russia as a new developing region.

Our UK business has had a strong second half with an increasing demand for
diesel projects. As planned, SAIC Motor Company Ltd exercised their option to
take ownership of Ricardo 2010 to further develop their engineering ability for
their home market. We have agreed with SAIC that they will continue to have a
significant presence at our Leamington site and our broader business relations
with them continues to strengthen.

In Germany, performance in the second half has been in line with expectations.
Underlying business improvement, customer development and successful recruitment
to strengthen the high quality team have ensured that the pipeline of prospects
is particularly strong and growing.

Following a disappointing first half trading performance in North America, the
underlying trading before restructuring costs has improved in the second half on
the back of a strong order book. The senior management team was strengthened by
the appointment of Dean Harlow in May 2007 as President of the North American
subsidiary, to provide improved entrepreneurial leadership and further broaden
the business.

Strategic Consulting has been successful in achieving its focus of further
developing and building a more robust global client base. Second half
utilisation levels have increased on the back of a more buoyant market and we
continue to invest and recruit to support sustainable business growth.

Our pensions deficit is expected to reduce following a year of better than
expected returns from equities and an improved bond yield and planned company
contributions, although this will be offset in part by a revision to mortality
assumption.

Accelerated benefit from Research and Development tax allowances is expected to
lead to an overall tax credit this financial year.

Overall, despite the costs of structural change in America, trading is envisaged
to be in line with our expectations. Our order book has continued to grow as we
have successfully broadened our customer and geographic base. We are increasing
the rate of investment in people and facilities and are confident of further
steady progress in the new financial year.


Enquiries:

Ricardo plc                                         Tel: [phone]
Dave Shemmans, Chief Executive
Paula Bell, Group Finance Director
www.ricardo.com

Gavin Anderson & Company                            Tel: [phone]
Fergus Wylie/Daniel Hunter




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